It has been learned that Hunan and Qinghai have recently issued notices on matters related to a new round of new energy mechanism electricity price auctions.
Hunan: On October 29, the Hunan Provincial Development and Reform Commission issued a notice on matters related to the 2026 mechanism electricity price auction for new energy. The auction participants are wind power and photovoltaic projects that achieved full-capacity commissioning between June 1, 2025 and December 31, 2027 and have never been included in the mechanism electricity price, as well as distributed aggregators acting as agents for distributed photovoltaic projects that have never been included in the mechanism electricity price to participate in the auction. Large-scale commercial and industrial distributed photovoltaic projects and new energy nearby consumption projects are not included in the scope of auction participants this time. The newly added electricity volume included in the mechanism electricity price auction is 2.286 billion kWh (calculated on a full-year basis, the same below). Among this, wind power accounts for 1.19 billion kWh and photovoltaic accounts for 1.096 billion kWh. The auction ceiling for both wind power and photovoltaic is 0.35 yuan/kWh, and the auction floor is 0.23 yuan/kWh.
Qinghai: On October 28, the Qinghai Provincial Development and Reform Commission issued a notice on matters related to organizing the 2027 new energy incremental projects to carry out the mechanism electricity price auction. The auction participants are new energy projects that achieved full-capacity commissioning between June 1, 2025 and December 31, 2027 and have never been included in the scope of mechanism electricity price implementation. The total mechanism electricity volume for this auction is 2.859 billion kWh, among which wind power accounts for 1.451 billion kWh and photovoltaic accounts for 1.408 billion kWh. The upper and lower auction limits for photovoltaic are 0.2277 yuan/kWh and 0.15 yuan/kWh respectively. The upper and lower auction limits for wind power are 0.24 yuan/kWh and 0.18 yuan/kWh respectively.
Details are as follows:
Notice of the Hunan Provincial Development and Reform Commission on Matters Related to the 2026 New Energy Mechanism Electricity Price Auction
Xiang Fa Gai Jia Diao [2026] No. 612
To all municipal and prefectural development and reform commissions, State Grid Hunan Electric Power Co., Ltd., and all relevant power generation enterprises:
In accordance with the provisions of the Notice on Issuing the Implementation Plan for Deepening the Market-Oriented Reform of New Energy On-Grid Electricity Prices to Promote High-Quality Development of New Energy in Hunan Province (Xiang Fa Gai Jia Diao [2025] No. 663) issued by the Provincial Development and Reform Commission, the Provincial Energy Bureau, and the Hunan Energy Regulatory Office, and the Notice on Issuing the Implementation Rules for the New Energy Mechanism Electricity Price Auction in Hunan Province (Xiang Fa Gai Jia Diao [2025] No. 694) issued by the Provincial Development and Reform Commission, it has been decided to carry out the 2026 new energy mechanism electricity price auction. The relevant matters are hereby notified as follows:
I. Auction Participants
(1) Scope of participants. The auction participants are wind power and photovoltaic projects that achieved full-capacity commissioning between June 1, 2025 and December 31, 2027 and have never been included in the mechanism electricity price, as well as distributed aggregators acting as agents for distributed photovoltaic projects that have never been included in the mechanism electricity price to participate in the auction. Large-scale commercial and industrial distributed photovoltaic projects and new energy nearby consumption projects are not included in the scope of auction participants this time.
(2) Organization by category. Auctions and clearing shall be organized separately for two project groups: wind power and photovoltaic.
II. Auction Parameters
(1) Electricity volume scale. The newly added electricity volume included in the mechanism electricity price auction is 2.286 billion kWh (calculated on a full-year basis, the same below). Among this, wind power accounts for 1.19 billion kWh and photovoltaic accounts for 1.096 billion kWh.
(2) Minimum declaration adequacy ratio. The minimum declaration adequacy ratio for both wind power and photovoltaic auctions is 125%. When the electricity volume of auction participants participating in clearing fails to meet the adequacy ratio requirement, the total mechanism electricity volume for that type shall be automatically reduced until the minimum requirement is met.
(3) Upper limit of mechanism electricity proportion. The upper limit of the mechanism electricity proportion for a single project is 60% for wind power and centralized photovoltaic, and 70% for distributed photovoltaic.
(4) Upper and lower auction limits. The auction ceiling for both wind power and photovoltaic is 0.35 yuan/kWh, and the auction floor is 0.23 yuan/kWh.
(5) Implementation period. The implementation period of the mechanism electricity price for both wind power and photovoltaic is 10 years. For projects that were commissioned in 2026 or earlier and are included in this mechanism, the mechanism electricity price shall be implemented from January 1, 2027. For projects commissioned in 2027 and included in this mechanism, the mechanism electricity price shall be implemented from the first day of the month following the declared commissioning date.
(6) Minimum clearing proportion for marginal projects. If the mechanism electricity volume selected for a marginal project is less than 30% of its auction electricity volume, the selection result of the marginal project shall be cancelled, and the mechanism electricity price shall take the declared price of the preceding selected project.
(7) Auction electricity volume for a single project. 1. Wind power project auction electricity volume = approved installed capacity of the project × wind power utilization hours of 2,063 hours × (1 - auxiliary power consumption rate of 2.48%) × upper limit of mechanism electricity proportion of 60%. 2. Centralized photovoltaic project auction electricity volume = filed installed capacity of the project (AC side) × photovoltaic power generation utilization hours of 963 hours × (1 - auxiliary power consumption rate of 0.89%) × upper limit of mechanism electricity proportion of 60%. 3. Distributed photovoltaic project auction electricity volume = filed installed capacity of the project (AC side) × photovoltaic power generation utilization hours of 963 hours × (1 - auxiliary power consumption rate of 0.89%) × upper limit of mechanism electricity proportion of 70% (including self-generated and self-consumed electricity).
(8) Performance guarantee calculation formula. Wind power project performance guarantee amount = approved installed capacity of the project × wind power utilization hours of 2,063 hours × auction ceiling of 0.35 yuan/kWh × proportional coefficient of 10% (the amount shall be rounded to the nearest thousand yuan, the same below), and shall not be less than 5,000 yuan. Photovoltaic project performance guarantee amount = filed installed capacity of the project (AC side) × photovoltaic power generation utilization hours of 963 hours × auction ceiling of 0.35 yuan/kWh × proportional coefficient of 10% (the amount shall be rounded to the nearest thousand yuan, the same below), and shall not be less than 5,000 yuan. Distributed aggregator performance guarantee amount = Σ (filed installed capacity of the represented project (AC side) × photovoltaic power generation utilization hours of 963 hours × auction ceiling of 0.35 yuan/kWh × proportional coefficient of 10%, and a single represented project shall not be less than 5,000 yuan).
III. Other Matters
(1) Within 3 working days after the issuance of this notice, State Grid Hunan Electric Power Co., Ltd. shall publish the auction announcement through the "New Energy Cloud" website (https://sgnec.sgcc.com.cn), the "Online State Grid" App, and the "95598 Smart Interaction" website, clarifying the auction process, time schedule, and other specific matters.
(2) The final auction results shall be separately announced by the Provincial Development and Reform Commission.
(3) Matters not covered herein shall be implemented in accordance with the Implementation Rules for the New Energy Mechanism Electricity Price Auction in Hunan Province. Auction supervision email: fgwjtc@hunan.gov.cn.
Hunan Provincial Development and Reform Commission
October 27, 2026
Notice of the Qinghai Provincial Development and Reform Commission on Matters Related to Organizing the 2027 New Energy Incremental Projects to Carry Out the Mechanism Electricity Price Auction
To State Grid Qinghai Electric Power Company and all relevant power generation enterprises:
In accordance with the work requirements of the Notice on Issuing the Implementation Plan for Deepening the Market-Oriented Reform of New Energy On-Grid Electricity Prices in Qinghai Province (Qing Fa Gai Jia Ge Gui [2025] No. 645) issued by the Provincial Development and Reform Commission, the Northwest Regulatory Bureau of the National Energy Administration, and the Provincial Energy Bureau, it has been decided to organize the 2027 new energy incremental projects in Qinghai Province to carry out the mechanism electricity price auction. The relevant matters are hereby notified as follows.
I. Auction Participants
(1) Scope of participants. New energy projects that achieved full-capacity commissioning between June 1, 2025 and December 31, 2027 and have never been included in the scope of mechanism electricity price implementation.
(2) Organization by category. Auctions shall be organized separately for wind power and photovoltaic power generation.
II. Auction Parameters
(1) Electricity volume scale. The total mechanism electricity volume for this auction is 2.859 billion kWh, among which wind power accounts for 1.451 billion kWh and photovoltaic accounts for 1.408 billion kWh.
(2) Auction price limit levels. The upper and lower auction limits for photovoltaic are 0.2277 yuan/kWh and 0.15 yuan/kWh respectively. The upper and lower auction limits for wind power are 0.24 yuan/kWh and 0.18 yuan/kWh respectively.
(3) Implementation period. The guarantee period is 12 years. For projects that have already been commissioned at the time of auction selection, the mechanism electricity price shall be implemented from the first day of the month following the selection date. For projects not yet commissioned at the time of selection, the mechanism electricity price shall be implemented from the first day of the month following the actual commissioning date (the electricity volume for the first year shall be converted on a monthly basis). For projects commissioned later than the declared commissioning time, the mechanism electricity volume covered between the first day of the month following the committed commissioning date and the end of the month of the actual commissioning date (converted on a monthly basis) shall automatically become invalid.
(4) Upper limit of declared electricity volume. The upper limit of mechanism electricity volume declaration for a single centralized project = installed capacity (AC side) × annual power generation utilization hours of that power source type × (1 - auxiliary power consumption rate) × upper limit proportion. The upper limit of mechanism electricity volume declaration for distributed (decentralized) projects = installed capacity (AC side) × (1 - annual self-generated and self-consumed electricity as a proportion of power generation) × annual power generation utilization hours of that power source type × upper limit proportion. Among this, the annual power generation utilization hours for wind power and photovoltaic are 1,462 and 1,186 respectively, the auxiliary power consumption rates are 0.79% and 0.63% respectively, and the upper limit proportions are 60% and 80% respectively. The annual self-generated and self-consumed electricity as a proportion of power generation for distributed photovoltaic and decentralized wind power is 13.57%. The upper limit proportion is uniformly 100%.
(5) Performance guarantee requirements. Projects not yet commissioned shall submit performance guarantees as required. The minimum guarantee amount shall be calculated as: approved (filed) installed capacity of the project (AC side) × the average power generation utilization hours over the past 3 years for electricity sold within the province of that power source type × the average on-grid electricity price over the past 3 years of that power source type × 5%. Among this, the average power generation utilization hours over the past 3 years for electricity sold within the province for wind power and photovoltaic are 757 and 766 respectively, and the average on-grid electricity prices are 0.2206 yuan/kWh and 0.2280 yuan/kWh respectively.
(6) Automatic adjustment mechanism for declaration adequacy ratio. Photovoltaic (wind power) declaration adequacy ratio = total actual effective declared electricity volume of photovoltaic (wind power) ÷ total mechanism electricity volume for photovoltaic (wind power) auction × 100%. To ensure full competition, the minimum declaration adequacy ratio for photovoltaic (wind power) in this auction is set at 130%. When the declaration adequacy ratio ≤ 130%, the total mechanism electricity volume for photovoltaic (wind power) auction shall be automatically adjusted to: total actual effective declared electricity volume of photovoltaic (wind power) ÷ 130%.
(7) Automatic adjustment mechanism for marginal clearing projects. To avoid the situation where the marginal clearing mechanism leads to a small cleared electricity volume for marginal projects, thereby affecting their revenue: when the cleared electricity volume proportion of a marginal project (cleared electricity volume ÷ declared electricity volume) ≤ the marginal lower limit proportion (25% × 1 ÷ declaration adequacy ratio), the auction result of the marginal project shall be invalidated and deemed as not selected, and it may participate in subsequent auctions. Correspondingly, the total mechanism electricity volume for the auction shall be reduced by the cleared electricity volume of the marginal project, and the overall auction clearing price shall be adjusted to the declared price of the next marginal project.
III. Relevant Requirements
First, new energy enterprises included in the mechanism through the auction shall report project construction and grid connection progress monthly through the auction platform to ensure that projects are completed and put into operation on schedule and the mechanism electricity price is implemented. Second, for new energy projects included in the mechanism electricity price of our province (including existing projects), when signing annual mechanism electricity price contracts with the provincial electric power company, support shall be provided for the decomposition of monthly mechanism electricity volume as follows: monthly mechanism proportion = monthly mechanism electricity volume to be executed ÷ total annual contracted mechanism electricity volume × 100%. The monthly mechanism proportions shall be independently chosen by the project owner, and the sum of the mechanism proportions for each month within the year shall be 100%. Third, the provincial electric power company shall promptly publish the auction announcement, optimize the work process, and must complete this auction before December 15, 2026, and submit the auction results to the Provincial Development and Reform Commission and the Provincial Energy Bureau. If major matters are encountered during the auction period, they shall be reported promptly.
Qinghai Provincial Development and Reform Commission
October 27, 2026
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